3 Advertising & Marketing Stocks to Watch Amid Industry Woes

The rise in service activities, along with increased digital marketing services and the success of the work-from-home trend, is enabling the Zacks Advertising and Marketing industry to counter the prevailing revenue softness.

Customer-centric approaches to business, digital strategies, and technology investments are helping Publicis Groupe S.A. PUBGY, National CineMedia, Inc. NCMI and AdTheorent Holding Company, Inc. ADTH to sail through the current testing times.

About the Industry

The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications and in-store design services. Prominent players from the industry include Interpublic and Omnicom. The pandemic has changed the way industry players have conducted business and delivered services so far. Currently, the industry’s key focus is on channelizing money and efforts toward media formats and devices. To position themselves suitably in the post-pandemic era, service providers are increasing their efforts toward formulating strategic initiatives and identifying sources of demand.

What’s Shaping the Future of the Industry?

Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the Bureau of Economic Analysis, GDP grew at an annual rate of 2.5% in 2023 compared with 1.9% growth in 2022. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for the past 14 months, indicating continued expansion.

Reviving Demand: The industry is mature, with demand for services remaining stable over time. Revenues, income and cash flows are anticipated to gradually reach the pre-pandemic levels, aiding most industry players to pay out stable dividends.

Digital Marketing Gathering Steam: Digital media consumption has shot up, with consumers spending more

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3 Advertising & Marketing Stocks to Watch Amid Industry Woes – November 7, 2023

The rise in service activities, along with increased digital marketing services and the success of the work-from-home trend, is enabling the Zacks Advertising and Marketing industry to counter the prevailing revenue softness.

Customer-centric approaches to business, digital strategies and technology investments are helping Omnicom Group Inc. (OMC Free Report) , National CineMedia, Inc. (NCMI Free Report) and Harte Hanks, Inc. (HHS Free Report) to sail through the current testing times.

About the Industry

The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications and in-store design services. Prominent players from the industry include Interpublic and Omnicom. The pandemic has changed the way industry players have conducted business and delivered services so far. Currently, the industry’s key focus is on channelizing money and efforts toward media formats and devices. To position themselves suitably in the post-pandemic era, service providers are increasing their efforts toward formulating strategic initiatives and identifying sources of demand.

What’s Shaping the Future of the Industry?

Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the “advance” estimate released by the Bureau of Economic Analysis, GDP grew at an annual rate of 4.9% in the third quarter compared with 2.1% growth in the second quarter. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for the past ten months, indicating continued expansion.

Reviving Demand: The industry is mature, with demand for services remaining stable over time. Revenues, income and cash flows are anticipated to

Read More ...

WPP slashes outlook again as China slowdown adds to tech woes

Branding signage is seen for WPP, the world's biggest advertising and marketing company, at their offices in London

Branding signage for WPP, the largest global advertising and public relations agency at their offices in London, Britain, July 17, 2019. REUTERS/Toby Melville/File Photo Acquire Licensing Rights

  • WPP cuts full-year forecast for second quarter in a row
  • Expects growth of 0.5-1.0, down from 1.5-3.0%
  • Tech companies reluctant to spend, GroupM slows sharply
  • Shares fall as much as 5% to three-year low

LONDON, Oct 26 (Reuters) – Ad group WPP (WPP.L) cut its outlook for the second time in as many quarters on Thursday as tech clients continued to cut back on marketing, growth slowed sharply at its media buying agency GroupM and China disappointed.

The British company, whose agencies include Ogilvy, said it now expected like-for-like growth for 2023 of 0.5-1.0%, down from the 1.5-3.0% it forecast in August and the up to 5% it expected earlier in the year.

“Our top-line performance in Q3 was below our expectations and continued to be impacted by the cautious spending trends we saw in Q2, particularly across technology clients with more impact from this felt in GroupM over the summer than the first half,” CEO Mark Read said.

WPP’s like-for-like revenue less pass-through costs fell 0.6% in the quarter while the market had expected 1.0% growth.

The performance trailed rivals Interpublic, which reported a 0.4% decrease, Omnicom, which recorded 3.3% growth, and Publicis, the strongest of the big four, with 5.3% growth.

Read noted that Meta, which published results on Wednesday, had reduced marketing spend by 24%.

“Technology companies (…) are looking very carefully at their marketing expenses,” he said in an interview. “But I do think in the long run that will correct itself.”

Its shares fell as much as 5% to a three-year low.

Read said it was also a tougher quarter in China, where consumer spending had not returned

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3 Advertising & Marketing Stocks to Watch Amid Industry Woes

The rise in service activities, along with increased digital marketing services and the success of the work-from-home trend, is enabling the Zacks Advertising and Marketing industry to counter the prevailing revenue softness.

Customer-centric approaches to business, digital strategies and technology investments are helping Publicis Groupe S.A. PUBGY, Omnicom Group Inc. OMC and The Interpublic Group of Companies, Inc. IPG to sail through the current testing times.

About the Industry

The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Prominent players from the industry include Interpublic and Omnicom. The pandemic has changed the way industry players have conducted business and delivered services so far. Currently, the industry’s key focus is on channelizing money and efforts toward media formats and devices. To position themselves suitably in the post-pandemic era, service providers are increasing their efforts toward formulating strategic initiatives and identifying sources of demand.

What’s Shaping the Future of the Industry?

Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the “advance” estimate released by the Bureau of Economic Analysis, GDP grew at an annual rate of 2.4% in the second quarter of 2023 compared with 2% growth in the first quarter. Fed’s decision to pause interest rate hike in June after ten straight increases offered relief to the global economy. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for the past seven months, indicating continued expansion.

Reviving Demand: The industry is mature, with demand for services remaining stable over time. Revenues, income and cash

Read More ...

3 Advertising & Marketing Stocks to Watch Amid Industry Woes – August 23, 2023

The rise in service activities, along with increased digital marketing services and the success of the work-from-home trend, is enabling the Zacks Advertising and Marketing industry to counter the prevailing revenue softness.

Customer-centric approaches to business, digital strategies and technology investments are helping Publicis Groupe S.A. (PUBGY Free Report) , Omnicom Group Inc. (OMC Free Report) and The Interpublic Group of Companies, Inc. (IPG Free Report) to sail through the current testing times.

About the Industry

The Zacks Advertising and Marketing industry comprises companies that offer an extensive range of services, including advertising, branding, content marketing, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Prominent players from the industry include Interpublic and Omnicom. The pandemic has changed the way industry players have conducted business and delivered services so far. Currently, the industry’s key focus is on channelizing money and efforts toward media formats and devices. To position themselves suitably in the post-pandemic era, service providers are increasing their efforts toward formulating strategic initiatives and identifying sources of demand.

What’s Shaping the Future of the Industry?

Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the “advance” estimate released by the Bureau of Economic Analysis, GDP grew at an annual rate of 2.4% in the second quarter of 2023 compared with 2% growth in the first quarter. Fed’s decision to pause interest rate hike in June after ten straight increases offered relief to the global economy. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for the past seven months, indicating

Read More ...